Military Rotorcraft Market CAGR of 4.28% and Reach at US$30.7 Billion by 2018-2028

Global military rotorcraft market, valued at US$20.2 billion in 2018, is projected to grow at a CAGR of 4.28% over the forecast period , to reach US$30.7 billion by 2028 and cumulatively value US$271.7 billion. The market consists of four categories: multi-mission and maritime helicopter, attack helicopter, transport helicopter, and training helicopter. The market is expected to be dominated by the multi-mission and maritime helicopter segment, which will account for 42.4% of the market, followed by attack, transport, and training helicopters with shares of 34.0%, 22.3%, and 1.3% respectively. The Asia Pacific region is forecast to dominate the sector with a share of 35.2%, followed by North America and Europe, with shares of 34.1% and 17.1% respectively.

Apart from emerging economies in the Middle East and South Asian regions which are witnessing increasing defense expenditure due to regional power struggles and territorial disputes, countries in North America and Western Europe are also expected to increase their defense outlays after years of budget cuts and sequestration measures presenting global military rotorcraft manufacturers with greater opportunities in the coming decade.

Rapidly changing global security scenario and the growing importance of unconventional missions and urban warfare have resulted in change of roles for helicopters in the modern warfare strategies. Unlike their traditional roles, rotorcrafts are being used as part of the comprehensive mission parameters, which calls for integration of advanced and multiple capabilities in rotorcrafts.

As the existing helicopters are unable to fulfill these roles, countries are focusing on either developing or procuring helicopters with multiple mission modes, which is currently driving the demand for military helicopters across the world. Apart from this, growing disputes over maritime borders and offshore natural resources are the primary drivers of the growing demand for maritime helicopters with multi-mission capabilities. Despite facing financial constraints, major defense spenders are driven by the growing need for the helicopters with advanced capabilities and challenges from internal and external security threats.

The primary forces driving large scale military modernization plans in this region are territorial disputes and the high threat of terrorism. A significant increase in Chinese defense spending has led other countries in the region to increase their defense budget in order to maintain a balance of military power in the region